Crude oil prices rose near $90 per barrel following tensions near the Strait of Hormuz escalated after Iran’s Islamic Revolutionary Guard Corps (IRGC) launched a drone attack targeting the US Navy’s Fifth
Fleet in Bahrain. It came in retaliation for American strikes on Iranian territory earlier on Wednesday.
The fresh strikes have put the existing ceasefire in tatters, and the hopes of a peace deal between Tehran and Washington have taken a hit.
WTI and Brent crude oil climbed above $89 and $92.51 per barrel, respectively, on Wednesday morning. Fears of a global energy crisis stretching longer than expected have rattled the oil market, posing a threat to nations depending on the import.
How Did Fresh Tensions Arise?
The latest confrontation comes after the United States launched strikes against Iran on Tuesday following the downing of a US Army Apache helicopter in the Strait of Hormuz.
The IRGC said US forces had attacked multiple locations in southern Iran, including Jask, Sirik and Qeshm, before it launched what it described as a retaliatory operation against the US naval presence in Bahrain.
“In response to the enemy’s vicious move, the IRGC naval fighters launched a drone strike on the Bahraini 5th Navy at 2.30 am,” the Guards said in a statement carried by Iranian media.
The force also warned that “heavier responses” could follow if attacks against Iran continue.
